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<br />CONTINGENCY <br /> <br />. <br /> <br />The contingency term has often been abused in definition and practice. <br />There are no "contingency" expenditures. Only the city council has the <br />authority to transfer any of this money to other departments for "unforeseen <br />expenditures or for anticipated expenditures of uncertain amounts." <br /> <br />2000 BUDGET COMPARED WITH 1999 BUDGET <br /> <br />The departmental budget is: <br /> <br />- Proposed in the amount of $130,000; <br />- A $23,350 increase compared to the adopted 1999 budget; <br />- Approximately 2.2% of the total general fund expenditures. <br /> <br />The city council contingency budget includes the cost of living pay <br />adjustments for the non union employees for the upcoming year as <br />authorized by the City Council. A three percent cost of living adjustment <br />equals about $73,000. Accordingly, if this wage adjustment takes place, then <br />only about $57,000 remains in this budget fund for true contingency type . <br />expenditures. It should be noted that funds for new employees that are <br />planned to be hired in 2000 are located within the departmental budgets. <br /> <br />The city council contingency fund is used at the discretion of the City Council <br />for unexpected items or for known items of an uncertain amount. Under <br />ideal conditions, the city desires to not spend these contingency funds and, at <br />the end of the year, place these monies into appropriate reserve accounts. All <br />of the known expenditures from the city council contingency fund at the <br />beginning of the year, such as a River's of Hope contribution, reduces the City <br />Council's flexibility throughout the year and reduces the actual amount <br />available for true contingency expenditures. For very large city contingency <br />expenditures, the City Council will have to look at using some designated <br />reserves. <br /> <br />. <br /> <br />52 <br />